Participants in Supply Chain

Supply chain management is the management of the process or flow of data, goods and
finances related to a product or services. There is a mixture of organizations that
execute multiple functions, entities or setup such as raw materials from supplier,
manufacturers, wholesalers, dealers, even third-party logistics vendor and other firms or
people that are clients are communicating consistently with each other until the product
or services reaches the customer or consumer. These different entities and their
cooperation and communication involved from product manufacturing to product
delivery and serving was called participants and they are collectively considered as a
supply chain. Participant is a person who takes part and their responsibilities as a part
in something, they provide and contribute information, items, share ideas and create a
comfortable environment. Without participants in a development, there is no outcome
will happen.

Participants in supply chain is indispensable to the whole supply chain management,

these participants are crucially engaged to every operation because they are the one
that contribute and making different transaction. A supply chain is usually made up of a
company and its suppliers and consumers. There are many collections of participants in
supply chain that has different system and function, depends on the company. This
figure is one of the common collections that make up; a simple supply chain. As our
technologies and generations are expanding, the same with the outset of an expanded
supply chain. It already has the source’s supplier or the final supplier. Then, there is
also a buyer’s customer or final customer at the end of this long supply chain. Whole
group of businesses offer services to other companies such as expertise in logistic,
banking, communications, and information technology. The purpose of these
participants in supply chain management is to perform their different activities, gives
ranges of benefits and manage the streamlined flow of goods, that makes them the
main character of the supply chain, because they are one of the reasons why supply
chain works and why it existed.

PRODUCERS

A producer is someone who creates and supplies goods and services, they are
sometimes known as manufacturers, companies producing a commodity that combined
the labor and capital for their factor inputs and to create their outputs. Even those
companies that manufacture raw materials like digging for minerals, drill for oil and gas,
as well as companies that produce finished products are also now consider as one of
producers. Producers of finished goods manufacture their products using raw materials
and sub-assemblies created by other producers. On the latest Supply Chain
Management, the producers are considered as the combination of suppliers and
manufacturers. Some producers are also consumers or customers of products made by
other producers. Producers supply the products and services used by other supply
chain participants.

Suppliers are the individuals or organization that enters into an agreement that may
contribute the majority of the value on the products. Acquiring with another entity such
as distributor or retailer, to come up with high quality of products at a fair price from
manufacturer. Suppliers are the one that provide raw materials, parts, and components
that are required by the manufacturer to produce the goods. They even sell and make
some items or equipment for rents to consumers that some of their business needs, for
their company to function efficiently. They often used synonymously with vendors but
may also refer to an internal company resource, and play a vital role in the business
world and are very important to the functioning of the economy and industry. Producers
not only about supplying products and services, it also used by other supply chain
participants such as, the manufacturers are producers of products, consumers are also
a product made by other producers and service providers as its produce different
services.

Manufacturers is the essence of the economy’s secondary sector. These are the
companies engaged in the original production and assembly of products, equipment or
services. The process of creating the final product from raw material through
manufacturing it themselves using labor, tools and equipment, chemical or biological
processing or formulation, or even ask for assistance from outside manufacturers, then
at last, sell it to the customers. They also refer to companies that purchase such
products or services manufactured or assembled in accordance with company
specifications, like how some of the manufacturers now are having their large
opportunities because they have arrangements to produce goods in different countries.

Currently, these two major participants in supply chain are now consider as one with
producers, as its pretty much same because of their roles and responsibilities. However,
in Hospitality and Tourism industry, the producer are usually the hotel companies and
transportation services organizations for offering a different transportation service and
renting rooms for the accommodation of the travelers, which is the consumers. Service
providers are producers of services, and manufacturers are producers of products. In
restaurants, the one that provides their raw ingredients is their supplier and of course,
they surely have their company’s partner when it comes to the finished products that
only the manufacturer can give, because in that way, they can lessen their cost
production and can have more revenues. In general, the producer is the one who’s
responsible for overseeing all of the procedures of their production. They are the
frequent organization who acquires the rights to produce materials, goods and services,
and making sure that production process and procedures are strictly followed.
DISTRIBUTORS

A product distributor is a professional that creates an important communication in the

supply chain, it is the intermediary and external entity between the producers of the
products and services, the manufacturer of finished products, supplier of raw materials
and even the downstream entity in the distribution channel, the one that called a retailer
or a wholesaler. Wholesalers are mostly known as dealers. Distributors usually market
to multiple firms and sell goods in greater numbers than a single customer generally
does. One of the essential entity in terms of helping reach markets producers could not
otherwise target is the distributors, because they buy the final product, noncompeting
products or product lines and take inventory in bulk or huge quantities from producers or
manufacturers in, they store these goods in the warehouses, then supply or sell and
deliver a bundle or products to the wholesaler and collects all payments direct from
users or customers. In distribution agreement, instead that a distributor negotiates or
conclude sales on behalf of the principal business, the distributor just bought the
products outright from the principal and resells it to trade or an end consumer. The
distributors are the one that take or buy goods or products form the producer, either the
company of manufacturer. Distributor are more likely the big claw of a producing
product because distributor is depending on the area, all of consumers cannot be a
distributor unless they will buy in wholesale purchase. That is why a distributor exist, for
those customers that only wants to buy in retail amount and on what price they can only
afford.

There are different types of distributors, starting with the direct distributors that directly
sells their goods to a customer such as e-commerce website, storefronts, booths, shops
and door-to-door sales. While there are indirect distributors too, which is using other
channels or method that can be helpful for manufacturers because they do like some
industrial goods sold to government agencies and etc. The exclusive distribution that
only use limited sales outlets in a particular stores and location with the mindset of
creating rarity and exclusivity of an item or brand. There is also the dual distributor that
combines both direct and indirect method to reach a larger market audience. For
example, there is a vice cosmetic shop in a mall that sell vice cosmetics only, and then
on the other side, there is a Watson’s store that have different kind of cosmetics,
including the vice cosmetics items. In this way, you can grow your market influence
while still maintaining direct customer sales.

Since the retailers acquire the goods from the distributors, the distributors are the one
who buffer the producers from fluctuations in product demand by stocking inventory
purchased, doing much of the sales work to find and service customer needs. As the
needs of customers evolve and the availability of product, even the changes,
distributors stand as the producer’s basis on what kind of product that has lot of sales
and demand, they also provide the “time and place” role for the consumer, then supply
the goods when and where they are wanted by the customers, so that they can
continually track customer’s needs and match them with their products to reach their
target sales and market. The other roles of a distributor as a dealer other than to stock
marketing and distribution, is the whole inventory control, warehouse activities, the
product distribution process, customer care and post-sale services. Their main goal is to
achieve ultimate efficiency in delivering raw materials and parts, both partially and
completely finished products to the right place and time in the proper condition with
overall channel strategy.

RETAILERS

A business or a person in the business that finds and stock, buying and gathering goods
from wholesalers, manufacturers, or any other retailers in enough quantities of different
products, items and services, and then selling the products to the public in relatively
small quantities for use or consumption, such as you can buy in department stores,
supermarkets, convenience stores and even online shops nowadays in retail quantities.
They provide an important role of service to the public because they not only connect
manufacturers of good to the consumer but they also create a healthy competitive
environment where manufacturers will try their best to make more good quality of
products at the most affordable price, in order to reach their target market. In retailing,
this involves not only decisions about physical and digital locations but also about
marketing strategy and how to connect your products with your customers.
Retailers tend to meet the demand of every individual to make a profit along with
customer-relationship because retailers are the mediator between the wholesaler and
customers. Some of these upscale stores also provide value by offering a unique line of
products, customer’s discounts or product’s vouchers, gives low prices and wide
selection of products and services in one place to attract customers. There is also a
restaurant and food retail industry in retails. Any different restaurants surely have their
own distributor that delivers raw ingredients and other food materials in enormous
number, so the restaurant itself stand as the retailer because they sell food to
consumers for preparation and consumption. Another one for example is, when you
avail an accommodation in a five-star hotel, there are some hotels that they have a
product inside the fridge of every room. And whatever you consume in any of those
foods and product, will eventually charge with your payment. So that is also, a
marketing strategy of retail in high class type.

It shows that retailers are the last link in the distribution chain, they more closely on
tracking the preferences and demands of their customers than the distributors. They are
the one that must introduce the products and services to the customers in a very
effective way. Majority of retailers are located in residential areas where they can easily
promote and advertise their products to their customers and use combinations of price,
product selection, services and conveniency as their primary draw to attract customers.
Perhaps, they are also the one who may interact with their customers through social
medias, televisions, even cellular phones and a retail showroom. The main categories
of products that retailers sell are usually foods, hard goods such as furniture and cars,
soft goods such as clothing, footwear and also art goods like books, musical
instruments and art supplies.

As our technology has rapid development, the retail industry also improves and get to
kept up their line with e-commerce or online shops or application such as Shopee,
Lazada and TikTok. This give a conveniency for many people because they can buy
what they need and wants buy just scrolling their phone and check for pictures then
check it out and just wait for the delivery of their orders. But now, lot of sellers on those
platforms also started having a physical retail presence of their products because they
saw the opportunity of a market in a reason of many consumers still wants to touch, feel
and try the product themselves before they buy it and believes that physical retail
presence is still important to build trust with their customers. The point worth noting
here, is that even with the rise of online sales, physical shops still drive the majority of
goods out of the doors. In the absence of a retailer, customers would have to buy
directly from the factory outlet, where all the goods are of the same brand, and it can
cause a chaos for everyone and to supply chain.

CUSTOMERS

Anyone can be a customer, client, buyer or a consumer because in sales, business and
economics, the customers are the individuals who buys products, commodities and
services for their own personal use from a different store, seller, vendor and that is how
the money, sales flow or something else of value. Even a supplier or an organization
which is a producer or distributor who purchase goods in order to incorporate it into
another product that they in turn sell to their customers which can be called ultimate
customers. Not all customers are customer in the first place, there are some people that
just inquiring at first, knowing different information about the product that they will going
to buy and canvass different prices and offers. Eventually, you can have a potential
customer if you are knowledgeable about how to assist a customer, get to know them,
what they need, what they want and how to convince them to avail and invest with your
products or services. Because every business now, have lots of opponents literally just
beside them that can offer much better prices, products and services, which might
attract more your supposed to be customer. As much as possible, as long as you can,
give everything that your customer wants, except for the things that may harm you and
your business.

All different businesses in every industry are competing with each other to attract
customers using different marketing strategy, either by advertising their products,
lowering their prices, through developing unique products and experiences that
customers will love. Client is also similar to customer but they are not same. While client
need to have an arrangement with the seller, the customers have no arrangement need
with the seller. For example, if you buy a cake at a bakeshop, you are considered
customer. However, the owner of that bakeshop is the client of their cake ingredients
supplier.

Customers play a most important role in as supply chain and for all businesses because
the success or failure of the business is dependent on the customer, they are the
reason why revenues continuously driving because without them, businesses cannot
continue to exist. Consumers can help companies improve their products and services
by telling them what they like and dislike and what they need and don't need. If a
customer is well satisfied in a product or with what their experienced, it will be a
permanent source of revenue, but if a customer is not satisfied, all efforts will be
possibly get wasted because customers generate income, spread their words and
provide insightful criticism to firms.

For example, I just saw a featuring video about Ugbo at Tondo Manila then watched it.
After watching it, I got curious and go there to try those different delicious cuisines. As
I’ve tried almost everything there, I had the best experience in a street that have many
choices of different foods. So, every time I have an interaction with some of my friends
and they will ask, “where we’ll be going to eat?”, I always recommend Ugbo, because I
know that it will not disappoint them and at the same time, I want them to have
themselves the best experience and satisfaction from good quality of food, products and
customer services. And because of that, reviews and recommendations, even the free
advertisement is always continued and flow as how many customers go there, try their
foods, enjoy the experience and then recommend it again to their friends and relatives.
This shows that customer is the main character in this supply chain, because they are
the reason why there is always a new development of products, new trends of things in
social media platforms, why the supply chain is always functioning and operating.

Customers are the wave of the future for companies or businesses can improve the
precision of their advertising campaigns. Nowadays, customers are very open on their
criticism, it’s either verbally, through social medias and etc. Nowadays here in our
country, TikTok application is the best app used for feedbacks and reviews about
different products, accommodations and even foods in different places. A person uses
their phone to record a video of the products, places and the food with a voice over of a
customer (which is also a vlogger), on what are their opinions and criticism. Customers
are significant to brands and organizations for various reasons. They bring in money for

companies, spread the news about them, and even provide insightful criticism.

SERVICE PROVIDERS

The general entity that provides service to all entities and participants of whole supply
chain is the service providers. It is typically governed by a service agreement and also
known as a logistics service provider or third-party logistics, a company that specializes
in offering services to help managing the supply chain including warehouse
management, order fulfillment and shipping orders. They also provide other services,
such as consulting, legal, real estate, communications, storage, and processing
services for other organizations. Partnering with a logistics service provider can help
you stay competitive by providing you with the supply chain and fulfillment infrastructure
needed to meet customer expectations. Service provider is also one of the important
organizations because it can help a company or businesses save some of their money
in the long run of operation and still help them to achieve success and goals in their
business endeavors.

There are two different popular service providers that every supply chain has. The
transportation and warehousing. In distribution suppliers, there are trucking firms and
municipal warehouses that provide service for them. Some business companies also
provide computer technology and data storage, while some service companies offer
consumer analysis and advertising, or offer model creation, technical facilities,
compliance consultation and management consultation. Even financial service
companies are providing programs such as loan origination, collateral appraisal and
even debt collections. Any different service that different company can or may offer to
help an organization improve their system and develop more efficient and effective
products and services.

One of the biggest industries that often partner with a logistics service provider is the
ecommerce businesses. Ecommerce provides the consumers with an amazing online
experience with their products and service provider are the one that helps them to
increase sales, build brand loyalty, customer retention, and even leads to reduce some
issues and complaints. For a customer, service provider is very essential in a living,
especially for their needs and wants. And when it comes to their orders online, the fast
and affordable shipping is really a good one. You can also have better order tracking
and faster return order process.

Again, service providers are producers of services that support the operation of supply
chains by delivering a mix of services tailored to meet the particular needs of each
supply chain participant. Usually gives out solutions and services within your scope of
work and breadth of knowledge. They typically offer managing of the inventory, making
up solutions for warehousing, fulfilling the orders, freight shipping and transportation
service. Some companies provide services to manufacturers, dealers, suppliers, and
consumers. Service providers have established advanced experience and capabilities
that are based on a specific task requested by a supply chain. As a responsibility, they
should deliver these resources more efficiently and at a reduced expense than
manufacturers, dealers, merchants, or even a customer.